Is service tax applicable?

1478 views 8 replies

When service was rendered service tax was exempted but at the time of the payment service tax applicable on the particular service.

Does service provider has to pay service tax?

please solve my query with relevant provisions....

thanx in advance....

Replies (8)

I think it would be taxable because....the liability of taxation rather arrives at the point of payment rather than at the point of rendering the service.......

But wait for others to reply.................

Service provider is not required to pay service tax because at the time of providing of service, the service was exempted.

Moreover, due to introduction of Point of Taxation Rules,2011 service tax is now required to be paid on accrual basis. When service provider is providing service it was exempted and therefore he is not required to pay service tax.

Originally posted by : Ashish

When service was rendered service tax was exempted but at the time of the payment service tax applicable on the particular service.

Does service provider has to pay service tax?

please solve my query with relevant provisions....

thanx in advance....

Are you giving the reason for exemption as <10 lakhs or something else, can you mention which service was exempt earlier and now taxable.

Nirav is correct. No service tax liability in this case.

The liability for ST would arise only when providing taxable services. Once the service becomes taxable the services provided or to be provided, billed or milestone reached would all be taxable. [ as per the POTR]

 

We are doing Galvanizing Job Work, is service tax applicable or not ?

 

Anil Mathur

Hi there,

Mr. Anil The contractor is outside the net, as the process amounts to manufacture and
also reasults in manufacture of excisable goods. Service tax is not applicable on Galvanizing Job Work.

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Service Tax Software

It cannot be taxable if it was exempt or non-taxable at the time of rendering the service. Receipt of money for services rendered long back - say before 1994 itself - cannot attract ST. If your problem is not solved, pl pm and I will send the authority to support.

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